According to Wind data, on August 18, brokerage stocks surged collectively, propelling the non-bank financial sector to close 0.81% higher for the day. Industry experts emphasized that heightened trading activity in A-shares and the rollout of capital market reform incentives are poised to fuel sustained growth in brokerage performance. Consequently, the brokerage sector stands to benefit from various positive factors, encompassing funding, policy, and fundamental aspects. Gao Chao, the lead analyst for non-bank financials at Kaiyuan Securities, maintains that the brokerage sector is currently undervalued, marked by low institutional ownership, fueling his optimism about potential opportunities in this domain. He advises investors to keep an eye on catalysts such as trading volume, mid-year financial reports, and policy developments, while suggesting an allocation strategy centered on three primary avenues: first, brokerages with robust retail operations; second, leading brokerages with a strong international presence; and third, fintech-related entities.